Forex news from the European morning session - 29 October 2019

Headlines:

Markets:

  • AUD leads, EUR lags on the day
  • European equities lower; E-minis down 0.2%
  • US 10-year yields down 1.1 bps to 1.831%
  • Gold down 0.3% to $1,488.08
  • WTI down 1.3% to $55.08
  • Bitcoin down 0.5% to $9,410
EOD 29-10

The big news on the session is that the UK looks set for its first December election since 1923, nearly a century ago, after Corbyn announced that Labour will back the bill today.

The pound had a rather whipsaw-y session, with cable falling to a low of 1.2807 earlier and then climbing back to a high of 1.2873 after the election news.

Price is now settling just under there despite some bit part strength in the dollar and yen amid slightly softer risk sentiment in the European morning.

With risk assets holding a little softer and US futures also nudging lower, USD/JPY remains sluggish just under the 109.00 handle with large expiries at 109.00-10 also in focus to limit price gains on the session.

The kiwi also saw early gains dissipate as NZD/USD fell from 0.6370 to 0.6340-50 levels during the session amid a firmer dollar as well.

Looking ahead, the focus should remain on the pound as the election bill gets put forward in parliament with a vote on that set to come later today.

But with Labour now backing the election bill, the focus will turn towards potential amendments to decide on the details and the date of the December election. Barring any potential major hiccups, the UK should be heading to the polls in about six weeks.